Theranos completes equity deal with shareholders

May 31, 2017

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Monitoring Equipment | Palo Alto, CA

Theranos, the embattled startup that’s been accused in several lawsuits of overstating the capabilities of its blood-testing technology, has given some of its investors new stock in exchange for a release of potential legal claims. The deal has recapitalized the startup’s most recent investors, with CEO Elizabeth Holmes giving up some of her equity to offset potential dilution. Theranos had raised hundreds of millions in funding from backers including Partner Investments and Draper Fisher Jurvetson. Check out our Theranos coverage for background on the lawsuit that led to the deal.